Early in November, the Financial Times reported that “US consultancy Gallup withdraws from China”. Why? The report says:
Polling group attacked as ‘tool’ to discredit Beijing as foreign companies face rising state scrutiny.
Another famous US company, Citigroup pledged expansion in China in July, but in October, they sold their Consumer Unit to HSBC. (Citigroup employees that were fired were very happy with the compensation package, some got half a million in a lump sum pay.)
Both news were perceived as foreign businesses fleeing China.
The statistics on the foreign investment of the 3rd quarter of 2023 further add to that sentiment:
As you can see, it is the first time the number has become negative since 1998 when the first data was published.
Many rich Chinese are so scared that “China’s rich are using total strangers to sneak cash out of the country”.
For years, business elites, especially those representing the interest of Foreign companies have been treated very nicely. They openly sang the praise of CCP as being so efficient and business-friendly, and growing the economy so fast. Human rights abuse was not much big concern considering the wealth they were amassing in China. Now it seems they are also human and need human rights protection.
Desmond Shum, a former business elite and white glove for ex-premiere Wen Jiabao’s family, tweeted:
China is becoming toxic for elites of the go-go years. Bao Fan , THE star banker of China tech industry, has been languishing in China jails since the beginning of the year. China Renaissance retrenches after influential founder’s detention
Now the news about Zhang Hongli. He was a pioneer when he first joined ICBC, the first int’l banker to join senior management of China big four banks of that time. We joked w Zhang of him swapping his snazzy banker’s suit for CCP bureaucrats’ executive jacket when he first reported to work in 2016
Now, Logistics Firm GLP seems to be in difficulty. It was the brightest star in China’s industrial real estate sector. Its Singapore listing was a gangbuster, second largest IPO in Singapore after Singapore Telecom, and its subsequent privatization, S$ 16B, was a whopper. I know it well since I sold my Beijing airport project to GLP during its IPO. Logistics Firm GLP Loses Last Investment-Grade Rating From S&P as Asset Sales Drag on.
We are definitely entering a new era. Any new bright stars these days?
WSJ also reported: “More Executives Vanish in China, Casting Chill Over Business Climate”:
The chief executive at live-streaming company DouYu and the chairman of a pharmaceutical business are the latest to go missing
Some Chinese businessman also described the anti-business environment in China on Twitter:
Around me there are a lot of entrepreneurial friends being interviewed by the Economic Investigation, Discipline Inspection Commission, tax interviews. No average person has experienced this!
For example, the leaders of Shanggang (a company) and Zhenhua (a company) were arrested. Anyone who had interacted with private enterprises is prone to be interviewed, some were even called back from Australia. When the plane landed, people from the Commission for Discipline Inspection were waiting by the ladder.
People who have remitted money online were interviewed by the mainland’s Economic Investigation Department, and others were interviewed by the tax authorities purely because they have lots of money on their books.
With such a business environment, the bosses have some choices, at least they could do nothing (close business), and there will be only one round of blackmail.
Before Xi left China, he went to visit the area around Beijing which was destroyed by the flood in August. Many people commented that it was a little late. That is not important, what is important is that everyone in that video was a high-ranking local official and CCP member. No normal people can get near the Emperor, ehh, I mean Pig Head (new nickname for Xi Jinping).
Meanwhile, the California governor “cleaned” up the city of SF for the APEC summit, Chinese consulate general in SF was paying hundreds of dollars a day to transport pro-CCP Chinese in LA to SF to stage another show: video of Xi’s entourage in the street.
Some X(twitter) user happily photoshopped the Golden Gate Bridge, which for a second, I thought was real. I was not too shocked at what the Governor would do to please Pig Head.
The banner is just a standard slogan commonly seen on the streets of China: “Together we are making a healthy city, and enjoying the beautiful hometown.”
Others took to the street with courage:
The most confusing scene is a man dressed as the Qing emperor beating up a pinky patriot (video) outside the St. Regis Hotel where Pig Head was staying. People say the Qing Emperor had to personally beat up pinkies because the pinkies were beating up his friend, a human rights activist who was also there to protest:
Many speculate that there is little possibility anything substantial will happen between China and the USA. But something will happen in January 2024, the Taiwan presidential election. Taiwan’s two main opposition parties have agreed to form a joint ticket in January’s crucial presidential election that is being closely watched by Beijing and Washington..
The main opposition Kuomintang and the smaller Taiwan People’s Party agreed to join forces in a meeting on Wednesday, with the aim of forming a coalition government next year.
Kuomingtang is the party that came to Taiwan in 1949 after being defeated in the civil war. Their fantasy has always been to return to the mainland to rule. Somehow they still fantasize about returning to China, to be ruled by CCP. The Taiwan People’s Party was founded by Ko Wenje, former mayor of Taiwan and an independent. He rose to political prominence as a medical doctor by riding the tide of the Sunflower movement (a student movement against the trade agreement Kuomingtang was pushing through Taiwan congress) and was aligned with PDD in his earlier life. His switch to form a coalition government is seen by many as purely opportunistic. But jointly the coalition might win the coming election.
Beijing is expected to welcome the move by the two mainland-friendly opposition parties.
Washington is seen as supporting Lai (PDD’s candidate), who has pledged to follow President Tsai Ing-wen’s US-friendly and other policies if elected.
If the two-party coalition wins the next election, tension between Beijing and Washington might also cool down, as Beijing is less likely to start a war.
After Biden and Xi met for four hours, one journalist asked Biden:
After the #BidenXiSummit, I asked @JoeBiden if he stood by his previous commitment (made 4 times) to defend #Taiwan from any Chinese military action given the US focus now on Ukraine and Gaza. He totally evaded the question.
Another journalist observed:
So important. Biden does not reply to question whether the U.S. will defend Taiwan. He also reiterates “One China” policy, but skips the rest of the sentence (Taiwan Relations Act, 3 Communiques and 6 Assurances).
I have to say, the credibility of US is on the line, not just in the Middle East, but in Asia, and in defence of democracy in general. Sigh!